If the risk-free rate of return is 5%, and a risky asset is available with an expected return of 10% and a standard deviation of 4%, what is the maximum expected rate of return you can achieve if you are willing to accept a standard deviation of 2%?

A US firm expects to receive €2,000,000 in 3 months. The spot exchange rate is $1.15 / €1. The 3-month borrowing rate in the US is 4% p.a. and the 3-month deposit rate in the Eurozone is 6% p.a. Using a Money Market Hedge, what is the dollar value of the receipt (to the nearest thousand $)?

A US-based company is due to receive €2,000,000 in 3 months. If the 3-month forward exchange rate is $1.137656 per €1, what is the dollar value of the receipt using a forward hedge?